The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1887-06-23
The State Debt.

Thos. Branch & Co., bankers and com.
mission merchants, Richmond, Va, have
: issued circular relating to the State debt
and the competing propositions presented
by the agents Of the English bondholders
and the Legislative committee, recently
in conference in Richmond. We take from
the cirer lar the following:
The English holders of colsols and 10-40's
and past dine Tax Coupons. through the
agency of the Council of Foreign Bond
holders, represented by Sir Edward Thorn.
ton and Mr.. L. N. Braithwaite, of London
the Legislature, represented bya commit
: tee of four Senators and six Delegates, on
the subject of a compromise OF the debt.
The question was most exha ustively in
vestigated in its various aspects, viz: The
present revenue OF. the State, the possible
means of increasing that revenue without
increasing the rate of taxation, the econ
omies that might increase the surplus ap-
plicable to interest without decreasing the
School Fund, On theapproni the
Colleges. The result wSs thai INC bond
i holders ofTaEsd to redn FIG sste 81 interest
on consols from to to3 per centum. and
make the principal redeemable at IS cents:
and reduce the interest on 10 40's from all
average of Al per cent to23 per cent. max
ing the principal. redeemable at GO cents,
and to fund all past due coupons from both
classes of bonds to and including the cou
ponS CT July, 1887, at IS per cent. into a 3
per cent bond, which would practically re-
duce the principal OF the Consols and 10
40's and coupons from face value of $24,.
100000 to SIT ,l6O,O 900, and the annual in
terest on the consols and 10-40's from
81 OF ,000to $685. 900.
This proposition was rejected by the
Legislative Committee, and a counter offer
was made to accept the reduction of prin-
cipal Of bonds and pay per cent. of the
Consols, and q per cent. of the 10-40's,
and fundsthe past due Tax Coupons at 50
per cent.
,There were some minor conditions
agreed to by both parties, such as the
cancellation of the bonds held by the
Sinking Fund and the cancellation by cash
purchase at SO cents OF as many Of the
outstanding coupons as the State could
pay for with money in hand.
The following comparisons will show
the two proposals in detail
THE BoNDHoLDERs' PROPOSAL,
Present Reduced Annual |
Principal Principal. Interest. |
GnnSOlg a.
duced to IS per ct SO, $4,000 $780,, 900 |
100000 1O-40s, to be
duced to Us per ct 4,4l0,000 10000 |
coo Tax coupons to be
reduced to per
cent. ......... =. 100000 10000 |
$4,000, 900 sl7,l6O.OoO s555 900 !
THE STATE OF vIRGINIAs' PROPOSAL
$l3 600, 900 Consols to he
duced to Is per ct. $9,750.0G0 5000 500 |
100000 10-4Us, to be re-
duced to G3 per ct. 4,4lO,000 ITO go |
100000 Tax cOupOns.t to be
reduced to 81 per
cent............... 100000 $4,000
s24,OOO,oOJ sl6,16o,OoO 1852, $50
On the proposal Of the Bondholders the
whole debt and annual interest would then |
be- |
Principal Annual Interest |
S3 10000 SIS of 1852, now in hands of
public. ................. 49,. s9l5OO |
100000 probable amount of total adj
ditional issue of 3s, allow -
ing for lost and destFS11e
:.
II ,l6O 900 by reduction of Consols and
l0-40s and coupons as above $4,000
l,lS0,000 Literary fund of Virginia -. 50, 400
Amount of appropriations to
the colleges of the State TOR
interest held by them in ex-
cess of what they would be
entitled to under the above
NEUTRALITY-SUSPICIOUS.. 100000
---- -
$2i, 10000 1914 900
On the same basis the prop
oStion of the State would
make principal and interest
as follows:
S23 100000 1850
81, 100000 ........ Difference. 1892 ,25O
The conference separated on this diff
ference the Legislature has adjourned, and
the Enulish Renrasant atiues haua Left for